TaxTMI 
TaxTMI 
2023 (7) TMI 713
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....re of their finished dutiable goods. 2. Circular No. 692/8/2003-CX dated 13.02.2003 CBEC and Trade Notice No. 171/2003 dated 26.08.2003 issued under Rule 31 of CE Rules 2002 by Hyderabad Commissionerate, prescribed the method of payment of duty, for such transaction, valuation has to be done under Rule 9 read with Rule 8 of Central Excise Valuation Rules, 2000 and cost certificates have to be prepared for every 6 months (based on historical data). 3. The Appellants discharged duty at the time of clearance based on cost certificate available as on that date. After completion of first 6 months of the year, they have obtained cost certificate based on cost of the immediate past current period. As there was increase in cost price, they have p....
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....irculars and Trade Notice referred above prescribe the method of payment. 9. The duty paid on the date of clearance based on previous period cost Certificate, is as per prescribed method and such duty is admittedly paid within due date prescribed in Rule 8 of CE Rules. Obtaining a fresh cost certificate once in 6 months is also as per prescribed method. When there is increase in cost price, paying differential duty on basis of fresh cost certificate, is also as prescribed. There is no short payment on these two occasions. Hence, interest liability does not arise. 10. The Hon'ble Mumbai HC in CEAT Ltd 2015 (317) E.L.T. 192 (Bom.) observed that interest levy is substantive provision of law which requires to be interpreted strictly. 11. Rel....
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.... in [2015 (320) E.L.T. A289 (Bom)] 15. The appellants submit that in the light of above decisions; a) The Hon'ble SC decision is applicable when differential duty payable is on account of additional consideration for sale transaction; b) The decision does not squarely apply to other circumstances of differential duty payable and for provisional assessments also the decision does not apply; 16. The appellants further submit the clearances being inter-unit transfers and their own recipient unit would avail Cenvat Credit of any duty payable, the transaction is revenue neutral. Hence, interest being compensatory in nature for revenue loss suffered, thus the issue of interest liability does not arise. Reliance is placed on the Bayer ABS....
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....s, the scope of which we have already referred to. Therefore, if the value which is declared by way of self-assessment, by way of Rule 6 and on which the duty is paid is not the full value then under the scheme of Section 11A read with Section 11AB and the Rules, the assessee incurs liability for interest when in a case where there is full value found and it dates back to the date of removal. 36. We have noticed that in this case admittedly that at the time goods were removed the price was not fixed. The assessee was fully conscious of the fact that it was subject to variation. Assessee must be imputed with knowledge that the value it was declaring was amenable to upward revision. The circumstances were indeed clearly both apposite and a....
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....pay interest on the value of the goods on the differential duty which he is admittedly liable to pay. Is it contemplated?" 20. He also relies on the ruling of Coordinate Bench of this Tribunal in the Appellant's own case in Appeal No. E/1/2012 wherein under similar facts and circumstances, vide Final Order No. A/30706/2019 dated 24.10.2019, it was held that - issue whether the Appellant is liable to pay interest on the differential duty which occurred due to escalation in price, has been settled by the decision of the Hon'ble Apex Court in the case of Steel Authority of India Ltd (supra). 21. Having considered the rival contentions, we find that admittedly the Appellant has correctly assessed the value on which duty was paid as the goods....